California residents have just over a week left to apply to the state’s first-time buyer tax credit program, the Franchise Tax Board announced Friday.
The state tax board will stop accepting applications at midnight Aug. 15 for the first-time buyer credit. The state is providing $100 million in tax credits, allocated on a first-come first-served basis, to first-time home buyers.
Although the state has received more than 31,000 applications, the tax board is accepting applications through Aug. 15 to ensure that enough valid applications are received to properly allocate the funds.
Taxpayers can only claim the tax credit on their state personal income tax return after receiving a certificate from the tax board, which said it expects to distribute the certificates over the next few months, beginning in August.
The credit is available to those who purchased a qualifying home and did not own a residence during the last three years.
Taxpayers must claim the credit – which equals the lesser of either five percent of the purchase price or $10,000 – in equal amounts over the following three tax years.
Californians who have previously purchased a home may still be eligible for a tax credit. A new home credit is available to taxpayers who close on a new home on or after May 1, 2010 and before August 1, 2011. Sellers must certify that the home has never been previously occupied.